India has more than 15 million intraday traders with a market size of over 4500 crores. The Intraday trading world is entered by thousands of DEMAT account holders and is also amongst the most practiced business forms in Indian markets. That being said, intraday trading also has its own risk collection, which is also very high.
Intraday trading involves fast decisions and actions that are definitely not easy for everyone to make. It also needs dedicated free time before and until you square off your spot because if the market closing time is not the same, the trader will immediately exit the intraday position at the time of market closure at the rate currently available.
Let’s take a look at some of the strategies which can be helpful for the businessman, no matter pro or a noob.
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Investing In Large Quantities :
Stocks with high liquidity ought to be followed by plenty of buyers and sellers willing for that stock. So always ensure that the stock you are going to trade is liquid enough making it easier to close and exit your post by the end of the day.
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Always Own Your Trade:
Specifics of the stock holding pattern are available on the BSE and NSE exchanges. A tightly guarded stock, i.e. a stock with very few investors, such as traders with a share of 70-80 percent, can be pretty unpredictable and therefore reduce the chances of good trading. Stocks should still be commonly kept, which in turn helps to mitigate risks.
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Consider Setting A Stop Loss :
Stop-loss is a mechanism that automatically squares off your post if it falls or increases below the defined limit. It is one of the most important components in an intraday trade to reduce risk. Just as the name suggests, it helps to curtail your loss after the defined limit. In an unpredictable economy, the stock prices can increase or decrease sharply sustaining heavy losses.
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Accomplishing The Target:
The time to close or exit the trade in the case of intraday is very short, so you should be very fast and attentive.
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Momentum Intraday Trading Strategy:
Intraday trading is about momentum. You need to recognize stocks before they make a major move and be ready to make the move as soon as it is made.
If you are fresh to investing and do not have enough knowledge of market dynamics and trading, it is best to take advice from a SEBI licensed financial adviser who can guide you through trading
There is a wide range of SEBI licensed and renowned individual investors, such as Capital Via, who can help guide you through intraday trading strategies by offering research-based advice and intraday trading levels.
These intraday trading techniques can be helpful, but if you invest or trade in the market, your capital is at risk 2. It is often best to reach the market with sufficient research and guidance.
The strategies mentioned above are helpful in achieving successful trades. Trading is always risky without prior knowledge. So it is advised to always start with small funds instead of investing in huge sums and losing your hard-earned money.
